Mother and daughter conspired to fabricate an account of the accident
In a recent ruling, the Ontario Superior Court of Justice dismissed an insurance policyholder's claim for coverage, concluding that she committed civil fraud and breached her insurance contract in a case involving a motor vehicle accident.
The controversy in Tieu v. Aviva Insurance Company of Canada, 2024 ONSC 1110 originated from a motor vehicle accident 2019 involving Victoria Wong and Natalie Robertson. The applicant, Chang Tieu, is Wong's mother and the owner of the Toyota that Wong operated at the time of the accident. At the time of the accident, Tieu and Wong had insurance coverage on the same policy, in good standing with Aviva. Tieu was listed as the insured owner, and Wong was listed as the driver.
At the time of the accident, Wong believed that her driver's licence was expired. To circumvent potential consequences due to Wong's belief that her driver's license had expired, Tieu and Wong conspired to falsely claim Tieu was driving at the time of the accident. The court noted that they misled Robertson, the police, and Aviva by fabricating the account of the accident, a deceit that Tieu perpetuated during legal proceedings, including examinations for discovery under oath.
The Ontario Superior Court of Justice found that Tieu's actions constituted a violation of her insurance policy terms under s. 233(1)(b) of the Insurance Act amounted to civil fraud. Specifically, Tieu's fraudulent misrepresentation significantly impacted the personal injury claim against her, misleading Aviva to defend a false narrative in the ongoing litigation initiated by Robertson.
The court's analysis highlighted the severe implications of Tieu's fraudulent actions, noting that they breached the insurance contract and undermined the judicial process and the administration of justice. The court ultimately decided to deny Tieu insurance coverage and defence, highlighting the critical nature of honesty in the reporting and litigation of personal injury incidents.
Furthermore, Tieu's attempt to seek relief from forfeiture under the Courts of Justice Act and the Insurance Act failed, with the court finding her ineligible for such relief due to the fraudulent nature of her conduct. Accordingly, the court dismissed Tieu's application.
